Bitcoin a top-3 asset in the event of US debt default: Survey

Major cryptocurrency Bitcoin (BTC) could go a top-three plus successful the lawsuit of a theoretical indebtedness default successful the United States, according to a caller survey.

As U.S. President Joe Biden prepares to meet with Congress connected May 16 to sermon the U.S. indebtedness ceiling, investors are seeking hedges to support their savings successful the lawsuit of default.

Gold, U.S. Treasury Bonds and Bitcoin would beryllium the apical 3 assets, should the U.S. neglect to rise its indebtedness ceiling and default connected its debt, information from Bloomberg's latest Markets Live Pulse survey suggests. The survey was conducted from May 8 to May 12, involving a full of 637 respondents including nonrecreational and retail investors.

More than 50% of concern professionals would bargain golden successful lawsuit the U.S. authorities fails to debar a indebtedness default. U.S. Treasury Bonds would beryllium the second-most fashionable plus successful specified a scenario. The canvass suggests that Bitcoin would beryllium the adjacent go-to alternate for retail investors.

Data from Bloomberg MLIV Pulse survey. Source: Bloomberg

This made Bitcoin a much fashionable prime than the U.S. dollar, the Japanese yen oregon the Swiss franc. According to the survey’s data, astir 8% of nonrecreational investor respondents and 11% of retail capitalist respondents said they are much consenting to bargain Bitcoin.

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The canvass comes arsenic markets turn progressively tense astir the U.S. indebtedness ceiling. In aboriginal May, Treasury Secretary Janet Yellen warned that the U.S. risks a catastrophic default arsenic soon arsenic June 1 if the indebtedness bounds isn’t suspended oregon raised. President Biden subsequently declared that the “whole world” would beryllium successful occupation if the U.S. defaulted connected its debt.

According to the Bloomberg MLIV Pulse survey, astir 60% of respondents said the risks are bigger this clip astir than successful 2011. 41% of respondents besides judge that a default poses a nonstop menace to the U.S. dollar arsenic the superior planetary reserve currency.

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